Press Information Bureau

Government of India

Ministry of Commerce & Industry

10-January-2012 15:51 IST

Indian PSUs to help Zimbabwe in Building Infrastructure US$ 100 Million Line of Credit for Health Infrastructure Mooted Anand Sharma Pushes for One Year Multiple Visas for Indian Businessmen

India has reaffirmed its commitment to partner in the economic development of Zimbabwe. This was stated by Mr. Anand Sharma, Commerce, Industries & Textiles Minister in his meeting at Harare with Mr. Tendai Biti, Finance Minister of Zimbabwe, yesterday. He stated that India would assist Zimbabwe in reducing its infrastructural deficit. Indian PSUs like IRCON, RITES and WAPCOS which had earlier also executed infrastructure projects in Zimbabwe could participate in executing fresh projects.

Mr. Sharma further stated that India would also assist Zimbabwe in bridging the technological gaps being faced by the country. Mr. Sharma stated that a team from India would be visiting Harare next week to discuss the proposal for LOC of US $ 100 million for strengthening of health infrastructure. The two Ministers also agreed to speed up the execution of the Pan-African e-Network Project.

Mr. Anand Sharma, Commerce Minister, expressed concern over the Indigenization and Economic Empowerment Act, as it could deter further investments by Indian companies in Zimbabwe. Mr. Biti, Finance Minister of Zimbabwe assured to look into the manner of implementation of the Act. Mr. Sharma also urged on the need for simplifying the process for issue of business visas to Indian businessmen. It was suggested that a one year multiple entry visa could be issued to encourage potential Indian investors visiting Zimbabwe.

Mr. Sharma appreciated the fact that Zimbabwe have been able to stabilize its macro-economic vitals in the last three years. He stated that India, because of its strong macro-economic fundamentals, had been able to successfully withstand the various economic crisis during the last six years. Mr. Sharma stated that India shared the philosophy of the Zimbabwean Government of inclusive growth. The Indian private investment in Africa also focused on empowering the local people.

India will assist Zimbabwe in reviving its textile sector. This assurance was given by Mr. Anand Sharma, Commerce, Industries and Textiles Minister during his meeting at Harare with Prof. Welshman Ncube, Ministry of Industry & Commerce of Zimbabwe. India will provide skills training and also help in the development of textiles clusters.

Mr. Sharma also informed his Zimbabwean counterpart that Indo-Zimbabwe ties would further strengthened through the setting up of a Rural Technology Park and a Food Testing Laboratory in Zimbabwe by India. This was one of the commitments made by India during the India-Africa Forum Summit held at Addis Ababa in May 2011. The two Ministers also reiterated the need for enhancing and diversifying the bilateral trade between the two countries which currently stood at US $ 128 million. The two Ministers also agreed to convene the meeting of the Joint Trade Committee within the next six months.

It was informed by Prof. Ncube that the Bilateral Investment Promotion and Protection Agreement (BIPPA), which was signed between India and Zimbabwe in 1999, had been ratified by the Parliament of Zimbabwe. India had forwarded the original Instrument of Ratification of BIPPA, ratified by the President of India to the Zimbabwean Government in April 2011. This ratification will help in increasing investments in both the countries.

Mr. Sharma announced that the National Institute of Design (NID) India is undertaking a project for training and exposure to craftswomen of rural Africa to empower them through design intervention in basketry making, as part of the India-Africa Forum Summit Action Plan. The initiative will cover five African countries at a cost of US $ one million over a period of three years. The project will be launched in Zimbabwe in February 2012 with the team from NID visiting Zimbabwe for identification of 25 craftswomen, who would be later trained in India, in collaboration with New Basket Workshop Foundation, an African NGO. The project aims at women empowerment through skill enhancement and appropriate marketing through leading Indian brands like Fab-India.

Later, addressing a business conference Mr. Anand Sharma announced that India would share its developmental experiences with Zimbabwe. He highlighted the critical role that Indian generic medicines had played in promoting healthcare in Africa. He stated that business persons of both countries could effectively partner each other to change the lives of the people for better. Mr. Sharma is accompanied by a high level CII business delegation led by Mr. Shyamal Gupta, Chairman, CII Africa Committee.

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Line of Credit proposed for health infrastructure with PSU participation and visa facilitation to boost bilateral investment ties. India proposed a Line of Credit for health infrastructure and offered Indian PSUs for project execution; technical assistance and capacity building measures including textile sector revival, a Rural Technology Park, and a Food Testing Laboratory were announced. India raised concerns about the Indigenization and Economic Empowerment Act and urged visa facilitation, while Zimbabwe's parliamentary ratification of the Bilateral Investment Promotion and Protection Agreement was noted to support investment flows.